Berkshire Hathaway's annual meeting kicks off this weekend, and some are predicting that the usual waves of adoration for Warren Buffet may turn into contempt as the investing icon is embroiled in a scandal involving his former heir apparent David Sokol. Sokol allegedly purchased $10 million of shares in a chemical company called Lubrizol and then recommended that Buffett buy shares himself, which he did.
Says Paul Argenti, professor at Dartmouth's Tuck School of Business, who has been teaching Buffett every year in his corporate responsibility class:
"If you set yourself up as a paragon of virtue in this world, you can expect to fall really hard when something bad happens to you."
At the end of March, Sokol resigned. Buffett initially defended him but latter issued a statement saying that he violated the company's code of ethics.